1E9Ct5D

The next highest interest in land is aleasehold estate, which is a temporary rightof possession enjoyed by one party (thetenant), to land owned by another (thelandlord) pursuant to the terms of a writtenlease.In addition to freehold and leasehold estatesin lands, there are several lesser categoriesof interests including easements, licences,profits à prendre and restrictive covenants.An easement is a burden which attaches toone piece of land for the benefit of anotherand which stays with the land even thoughthe land changes ownership. Commoneasements are rights-of-way for access orutilities and the right to drain water onto theland of another (drainage easements).Except where permitted by statute, valideasements require a clear description of theright to be enjoyed, the lands burdened andthe lands directly benefitted.Licences are likewise rights to use the landsof another but in this case the right is infavour of a person rather than land. Thus, aparticular business may have a licence tocross the land of a neighbour for thepurpose of accessing a public road in aparticular place. Generally speaking,licences expire when the ownership of theproperty over which the right is enjoyedchanges or when the licence holder sells itsland. If the licence is intended to outlive thecurrent parties to it, it is very important thatappropriate wording be included in theoriginal grant of licence to accommodatethis intention.Profits à prendre are rights to go onto thelands of another to take something of valuein the land itself (for example, crops, trees,gravel) and remove it.Restrictive covenants come in three forms,two of which run with the land and one ofwhich is contractual. Restrictive covenantsset up under a building scheme attach to allof the lots within the particular subdivisioncreated by the developer. Restrictivecovenants in residential subdivisions havebeen common for many years and now theyare appearing more frequently incommercial subdivisions also.Municipalities, for example, generallyimpose restrictive covenants on newindustrial parks. The intention of therestrictions is to protect the value of thelands within the subdivision by imposingrules as to how the lands may be used.Similarly, one land owner may subdivide hisland in two and sell one portion of landsubject to a restrictive covenant which is forthe benefit of the land remaining with theland owner. An example of this type ofrestrictive covenant would be a restrictionon building within a certain portion of thenew lot so that the view from the remainingland is not affected. Because this restrictionis for the benefit of the remaining land, thisrestriction will run with the two lots when thelands are sold.The contractual restrictive covenant is arestriction on the use which may be made ofland which is advantageous to the businessof the party selling it. Thus for example,Company A may sell a piece of land toCompany B with the restriction thatCompany B may not use the land for thepurpose of carrying on a business similar tothat of Company A. The lands to bebenefited by the restriction must beReal Estate Law 65